E-commerce platforms to pay taxes on behalf of sellers from January 1, 2026: draft

Nov 8th at 07:38
08-11-2024 07:38:08+07:00

E-commerce platforms to pay taxes on behalf of sellers from January 1, 2026: draft

E-commerce platforms may be asked to pay taxes on behalf of sellers from the beginning of 2026, according to a draft amendment to the Law on Tax Management.

A woman shopping online. E-commerce platforms may be asked to pay taxes on behalf of sellers from the beginning of 2026, to reduce compliance costs. — Photo hanoimoi.vn

Specifically, e-commerce platforms with payment function, both domestic and foreign, will be in charge of deducting, declaring and paying taxes on behalf of sellers.

Ministry of Finance said that this proposal aimed to reduce compliance costs for the whole of society.

Under the current regulations, sellers, including business households and individuals, are in charge of declaring and paying taxes while e-commerce platforms only provide information. The tax watchdog, however, found that the information provided by e-commerce platforms remains inadequate and not close to the actual situation, causing difficulty to tax management.

In order to improve the tax management on e-commerce business, it is necessary to ask e-commerce platforms to declare and pay taxes on behalf of sellers, the ministry said.

The finance ministry proposes a roadmap of 12 months after the proposal is passed for preparations, including upgrading the system, technology and database.

A decree detailing the cooperation mechanism between the tax watchdog and e-commerce platforms, responsibilities and obligations of e-commerce platforms in deducting, declaring and paying taxes on behalf of sellers will be issued, the ministry said.

This regulation might cause e-commerce platforms to incur additional costs in upgrading the systems to ensure the determination of deductible and payables by sellers on the platforms. However, the increases will not be significant because the determination is handled electronically, the ministry said.

The ministry said that this regulation will be applied for both domestic and foreign e-commerce platforms.

International experiences from the EU, Australia, Taiwan (China), Thailand and Japan showed that e-commerce platforms declaring and paying taxes on behalf of sellers are popular in terms of tax management on foreign services providers.

In Việt Nam, the taxation on business households and individuals is based on revenue, which is very simple. Thus, requiring e-commerce platforms to deduct, declare and pay taxes is appropriate, the ministry said, adding that this will help optimise tax management and prevent tax loss in e-commerce.

With regard to tax management on foreign services providers such as Facebook, Netflix, Spotify and Apple, the ministry proposed that regardless of whether they have permanent establishment in Việt Nam or not, they must declare and pay taxes. 

Bizhub



NEWS SAME CATEGORY

State bank to strengthen anti-money laundering efforts with new department

A new Department of Anti-Money Laundering will operate under the State Bank of Việt Nam (SBV) from January 5 next year.

New regulations on mergers, consolidation of credit institutions proposed

The State Bank of Việt Nam (SBV) has proposed new regulations on the mergers and consolidation of credit institutions, to ensure the safety and legitimate rights of...

Rising NPLs under increased pressure

Amid rising non-performing loan ratios, banks face increased pressure to strengthen provisioning and expedite collateral recovery, all while grappling with...

Lowered lending rates to facilitate capital access

The fourth quarter is bringing soaring capital demand for production and housing, calling for timely preferential credit and rate cuts to empower businesses and...

​Vietnam to debut AI tool for e-commerce platform supervision next week

Vietnam will introduce an AI-powered tool next week aimed at overseeing the revenue and business operations of e-commerce platforms, Deputy Prime Minister and...

Amendment to tax regulation on foreign suppliers proposed

The Government has recently proposed to amend a regulation of the Law on Tax Administration to better manage tax for foreign suppliers.

Krungsri to purchase remaining 50 per cent of SHBFinance's charter capital early

Ayudhya Public Bank Limited (Krungsri), a member of Japan's MUFG Group, announced plans on November 5 to expedite the purchase of the remaining 50 per cent of...

Krungsri seeks to accelerate purchase of 50% of SHBFinance’s charter capital

Ayudhya Public Bank Limited (Krungsri), a member of Japan's MUFG Group, has proposed to Saigon - Hanoi Commercial Joint Stock Bank (SHB) that it will speed up the...

For the first time, a Vietnamese bank has total assets exceeding US$100 billion

The Joint Stock Commercial Bank for Investment and Development of Việt Nam (BIDV) reported to have a total consolidated assets reaching nearly VNĐ2.576 quadrillion...

Bad debts expected to slow next time despite rising in nine months

Though bad debts increased in the third quarter of this year, it is expected to slow next time as macroeconomic factors are supporting the handling of the debts.

Bank stocks

Insurance stocks


MOST READ


Back To Top